The Government of Panama announced that it will establish a "formal conversation" with the Canadian company First Quantum Minerals only after it suspends the international arbitrations filed against the country due to the closure in 2023 of a major copper mine, with an investment of approximately 10 billion dollars according to the company.
In an official statement titled "The Government of Panama expresses its position on the Cobre Panama mine," it specifies that any future approach will only be possible if the company shows goodwill by immediately halting the ongoing arbitration processes. This statement arose after the Panamanian president, José Raúl Mulino, expressed his interest in starting discussions about the future of the mine during the following week.
Mulino noted that there are multiple international arbitrations against Panama claiming substantial sums in damages due to the mine's closure, and pointed out that the country has international legal representation to handle this matter. Therefore, the Government made it clear that it would not engage in formal negotiations with the mining company while arbitrations against the Panamanian state persist.
For its part, First Quantum issued a statement reaffirming its willingness to dialogue and find solutions for the benefit of the country and its inhabitants. The Cobre Panama mine, an open-pit operation owned by Minera Panama, a subsidiary of First Quantum Minerals, housed significant reserves of copper, gold, silver, and molybdenum, with an investment of around 10 billion dollars for its construction. The mine provided employment to thousands of workers and had a positive impact on the Panamanian economy as one of the main export items.
The mine's closure in 2023 following a ruling by the Supreme Court generated a negative impact on unemployment, state revenue, and the business fabric that depended on mining activity. Despite environmental and social protests, First Quantum has always denied the environmental damages associated with the mine's operation.
The Cobre Panama copper mine is currently in a maintenance and preservation phase, with an estimated cost of 12 million dollars. The reopening of the mine is a topic of interest for the Panamanian Government, which seeks to find a solution beneficial for all parties involved in this economic and environmental dispute.
